WASHINGTON — In the wake of the departure of its CEO and discussions of the company’s potential privatization, Amtrak is considering cuts to management and other cost-cutting moves, the company has confirmed.
“Given the current environment, the Executive Leadership Team and the Board have determined that we must act now,” Amtrak said in a statement today (March 28, 2025). “We will do this by examining our costs, including the size of our management staff, in a proactive and controlled way. In addition, we will be more selective in starting new projects and will look harder for efficiencies and innovative ways to address the problems and opportunities we face.”
Amtrak President Roger Harris reportedly informed employees of possible staff reductions in an email earlier this week. Harris is the company’s top official since the resignation of CEO Stephen Gardner, reportedly at the request of the White House [see “Amtrak CEO Gardner resigns,” Trains News Wire, March 19, 2025].
A source told Trains News Wire that discussions of corporate restructuring had been underway for at least a month, which would precede both the departure of Gardner and a call from presidential advisor Elon Musk for the privatization of Amtrak, the U.S. Postal service, and other functions of the federal government.
The environment Amtrak refers to is a reflection of such factors as efforts by the first Trump administration to cut the company’s funding, as well as uncertainty over funds that have already been allocated but not disbursed, and concerns that operations will not receive the same sort of support in Congress that has prevented previous deep cuts [see “Amtrak’s independence at stake …,” Trains News Wire, Feb. 14, 2025].
Amtrak’s staff has grown in recent years, in part as it bulked up areas needed to manage the major infrastructure projects funded under the Biden Administration. Amtrak’s Inspector General specifically highlighted staffing issues in a report on potential risks involved with construction of the Frederick Douglass Tunnel in Baltimore [see “Amtrak Inspector General sees risks …,” News Wire, Oct. 2, 2024].
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